Switching jobs in the UAE? 5 key considerations for handling loans and job formalities
Do you have an outstanding loan or credit card repayment? Five key things that you need to know if you are entering a new job in the UAE.
Do you have an outstanding loan or credit card repayment? Five key things that you need to know if you are entering a new job in the UAE.
Do you have an outstanding loan or credit card repayment? Five key things that you need to know if you are entering a new job in the UAE.
Are you preparing to switch to a new job in the UAE? If so, it is important to understand when to inform your current employer about your resignation, whether you should renew your job loss insurance, and the key formalities required for entering the new job. Let’s explore these topics in detail.
How long is the notice period?
To determine your notice period when resigning from your current position, review your employment contract. Notice periods in the UAE generally range from 30 to 90 days. While it is advisable to discuss your plans to move on with the senior official in the company management, your resignation letter should be submitted officially via email. Make sure to clearly state your final working day in the letter. If you are eager to join your new job without delay, you may choose to waive the notice period by compensating the current company or employer.
How long will you have to wait for receiving gratuity?
Under UAE labour law, employees are entitled to End of Service Gratuity after completing one year of service with the same employer. The company is required to pay this gratuity within 14 days of your last working day. If there are delays in receiving gratuity, you can file a complaint with the UAE Ministry of Human Resources and Emiratisation by calling the toll-free number 80060 or through their mobile app or website.
What if you have loan or credit card repayments?
If you have outstanding loans or credit card payments, your bank may freeze the gratuity payment. Loan agreements often include clauses allowing the bank to claim benefits, like gratuity, to offset any remaining debts. To avoid such issues, inform your bank about your job change plans and ensure that there is clarity regarding your repayments.
How long will it take to get a new visa?
If you hold a self-sponsored visa, such as a Golden Visa or Green Visa, there is no need to wait for a new work permit. However, if you are on a company-sponsored work visa, your current employer must first cancel your existing visa before your new employer can apply for a replacement. The process of obtaining a new visa takes 7 to 10 days.
Job loss insurance
If you already have job loss insurance, there is no need to apply for a new policy when switching jobs. However, be sure to renew it periodically and update any relevant information at that time. Do not forget to pay your premiums. Failure to pay the premium instalments will result in losing your insurance coverage even if you become unemployed.